Luxury homes in Shanghai have come under pressure amid worries about China’s faltering economy, with some rich families cutting prices by 5 million yuan (US$691,140) to attract buyers, according to property agencies and consultancies.
However, would-be buyers remain cautious, with most of them looking to bargain down prices even further amid the weak environment.
“High-priced flats and houses [in Shanghai] have been regarded as safe investments over the past two decades because of limited supply,” said Ding Haifeng, who works for financial consultancy Integrity in Shanghai. “The luxury homes market bucked the downward trend in the local property market earlier this year, but it seems as if it has finally fallen victim to a weak economy.”
The downward spiral for luxury homes in the mainland’s commercial and financial hub has added to bearish sentiment in China’s real estate market.
Luxury homes in the city are defined as residential units priced at more than 50 million yuan, which includes penthouses, villas and some big flats located in the urban centre.
Source: SCMP
